EPS/DPS about 19c for 09 which is 43% down on the 2008 of 34c 2010 is about 10c and same for 2011
Why the drop - It assumes no developments for 2 years. You have to remember that 2009 19c still has some development project income as some projects had already started before the lastest round of credit crunch.
I think GSJBW have a correct price near term at around $1 assuming the same no developments model for 2 years which is a yield of about 10% on this outcome.
I am trying to look beyond to when companies look to move again and the credit markets unfreeze. New supply would have been limited and $3 plus may be on the cards again as development profits would quickly take it beyond 20c EPS.
It is a long term hold from here just like if you buy real estate at the bottom of the cycle and ride it back up for a few years.
GMG Price at posting:
34.5¢ Sentiment: LT Buy Disclosure: Held
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